Important Information When Signing A Contract For Merchant Services

Important Information When Signing A Contract For Merchant Services

The first thing you need to look for is the term of the contract. Is it month-to-month, is it one year, two years, or more? The term of the contract should be clearly outlined in writing. If you don't see it you need to ask where in the contract that can be found. It has to be clearly stated what the terms are.

The next thing to look for is an early termination fee. In some cases it will be in the schedule of fees. In other instances it will be in the body of the contract. It may be a one time flat fee, or it could be a complicated formula of months left in term multiplied by the monthly minimum, and then added service fees. This could equal several hundred dollars, and because you signed the contract you would be responsible for those fees.

Another thing that a merchant really has to pay attention to is the true cost of processing credit cards. Everyday I see advertised rates of 1.39% for retail processing. This may catch your eye, but if you aren't careful it will catch your wallet too. If a processor actually signed a retail rate of 1.39% on credit card transactions they would be out of business fairly quickly. That rate may have applied to a card-present signature debit card, but a large majority of your transactions will be traditional credit cards. This means that the 1.39% advertised is never seen. Your processing rate should be clearly and plainly disclosed. If you don't understand what it is, ask and if your account representative can't explain it, walk away.

Another thing that you need to look for is whether or not your contract is set up for the type of processing that you're going to be doing. Be aware that a card-present swiped account is very different than a card not present keyed account. If you are not a swiped account and you're set up incorrectly it will cost you hundreds of dollars a year, if not more. While the rate for keyed accounts is higher than swiped, it's because a higher risk is assumed by the processor. If you process as either a MOTO (mail order telephone order) or internet account, and you signed a swiped account contract guess what will happen? Every single transaction that you ever process will downgrade and cost you more. To get the best rate you have to follow the guidelines. For a swiped account that means you have swiped the card and you transmitted the batch within 24 hours. Taking all of this into account, it's easy to see that if you don't swipe the card through a terminal you will never qualify for the promised rate. And if you're unhappy, and have signed a contract with an early termination fee you will be charged that if you break your contract.

You can see how important it is to read the contract carefully, ask questions, and know exactly what you're signing. While some people think that it isn't a big deal, it is still a legally binding contract that you're entering into. That means the company you sign with will have every right to collect money owed to them, and report to the credit agencies. Breaking a contract you aren't happy with can be a true nightmare, so know what you're signing before you do it!

POST COMMENT

Keyholding Security Services 3 Credit report Companies - Three Nationwide Credit Reporting Services Tips to Ensure a Perfect First Email to Your eBay Customer What Can Debt Consolidation Services Do for You? Top 6 Reasons To Hire A Seo Services Company Data Processing Services At Its Best in India Best Debt Consolidation Agencies – BBB Approved Consolidating Services Best Loans For Debt Consolidation - Unable To Service Your Debts? Expand Client Services By Outsourcing Seo Role of Courier service Virus and Spyware Removal Services in Reno London serviced apartments- a stay with greater individuality and privacy Bob Surowiec of MasterFaucet.com Speaks About Providing First-Class Customer Service!